Akron's small apartment buildings tend to be older brick walk-ups and big frame houses split into units years ago. They often price well below what similar unit counts cost in larger metros, which is why investors here look at five to eight units instead of another single-family home.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Akron with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and maximum LTV on 5-8 units varies by program. In Akron, the practical issues are building age, Summit County's reappraisal cycle and whether the rent roll is documented well enough to support the income.
Most five to eight unit properties in Akron are in the older neighborhoods close to downtown and the University of Akron: Highland Square, Firestone Park, North Hill, Kenmore and the blocks around Wallhaven and West Hill. Many are early 1900s houses converted into apartments, plus some brick walk-ups from the 1920s and the postwar years.
Investors who want newer buildings often look at Cuyahoga Falls, Stow, Barberton and Tallmadge, where small 1960s and 1970s buildings show up on the market. Rents are lower than in Columbus or Cleveland's suburbs, but purchase prices are lower too, which can leave room in the ratio.
| Area | Typical building | What to check |
|---|---|---|
| Highland Square, West Hill | Converted early-1900s houses, 5-6 units | Separate meters, fire separation, egress |
| North Hill, Kenmore, Firestone Park | Brick walk-ups and conversions | Deferred roofs and boilers, unit layouts |
| Cuyahoga Falls, Stow, Barberton | 1960s-70s small buildings | Parking, laundry income, updated electrical |
A building with five to eight units is still residential for our programs; nine or more units moves to commercial or multifamily financing. The loan qualifies on the debt service coverage ratio: the combined rent of every unit divided by the monthly payment of principal, interest, taxes, insurance and any HOA dues.
DSCR loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620. You do not provide W-2s or tax returns, LLC borrowers are standard and 30-year terms are available. Maximum LTV on 5-8 unit buildings can be lower than on a single-family home or duplex, so leverage varies by program.
If you are coming from fourplexes, expect the same core process with more paperwork: a full rent roll, leases for every occupied unit and an insurance policy that covers the whole building. If your plan is to buy several smaller buildings instead, a blanket portfolio loan can combine five or more rentals under one loan.
Ohio assesses real property at 35% of appraised value, and that assessment ratio is applied to the full appraised value of a rental; the owner-occupancy credit and homestead reductions do not apply to an investor. Summit County reappraises on a six-year cycle with an update in between, so a recent reappraisal can move the bill noticeably. Use the current county auditor record, not the seller's old bill.
Ohio's real property conveyance fee is customarily paid by the seller, but title, recording and lender costs still count toward your cash to close. Confirm the local split with your title company.
Ohio cities can require rental registration and time-of-sale or exterior inspections, and requirements change, so check with the City of Akron and any suburb you buy in before closing. Make sure the building's legal unit count matches what is being rented; a house being rented as six units but recorded as a three-family can cause problems with value, insurance and the loan.
For pre-1978 buildings, plan for lead-safe practices on any renovation and confirm whether the city has open orders on the property.
This example is illustrative and not a quote. An investor buys a 6-unit converted house in Highland Square for $480,000. The units average $825 a month, so gross rent is $4,950. Taxes are budgeted at $650 a month and insurance at $350.
At 75% LTV the loan is $360,000, estimated principal and interest is about $2,517 and the total payment is about $3,517, for a DSCR of about 1.41x. At 70% LTV the loan drops to $336,000, the total payment to about $3,349 and the DSCR rises to about 1.48x. Moderate prices let the ratio clear 1.0x comfortably at either loan amount, which is common for Akron buildings bought at today's prices.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $360,000 | $336,000 |
| Gross monthly rent | $4,950 | $4,950 |
| Estimated principal and interest | $2,517 | $2,349 |
| Property taxes | $650 | $650 |
| Insurance | $350 | $350 |
| Total monthly payment | $3,517 | $3,349 |
| DSCR | About 1.41x | About 1.48x |
With six or eight tenants, small gaps add up. One unit leased below market, another sitting vacant and a third on a month-to-month arrangement can pull the qualifying rent down by several hundred dollars a month.
The appraisal on a building this size typically weighs comparable sales and the building's income. Bring current leases for every occupied unit and a realistic market rent for any vacant one, and the ratio you calculate will be much closer to the one underwriting uses.
Northeast Ohio winters are hard on older roofs, gutters and heating systems. Many converted Akron buildings still run one boiler for several units, and an insurer may ask about its age and service history. Budget the premium from a real quote, not a guess, and get the roof age in writing.
If the owner pays heat or water for all units, that cost does not enter the DSCR payment, but it affects your actual cash flow, so look at it before you set your offer.
Akron's demand comes from hospital systems such as Summa Health and Cleveland Clinic Akron General, the University of Akron and employers along the I-76 and I-77 corridors. A five to eight unit building puts several of those tenants under one roof and one loan.
Because prices are moderate, many Akron files land in the $300,000 to $700,000 range, where the DSCR often clears 1.0x with room to spare. That margin can help if a unit sits vacant during a renovation.
Underwriting goes faster when the rent and expenses are documented up front. Gather the following, then get a quote through the form below or by phone at (877) 298-1001.
LendingStreet is an investment property financing company. Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, unit mix, rent roll and price, and we will run the ratio at a few loan amounts and come back with options, including sub-1.0 DSCR programs where they fit.
Residential. Buildings with up to 8 units are financed on our residential DSCR programs. Nine or more units moves to commercial financing.
Check with the City of Akron and the suburb where the building sits. Registration and inspection rules vary by city and change over time.
It can. A higher appraised value raises the tax bill, which raises the monthly payment and lowers the ratio, so budget on current values.
On our programs, buildings with up to 8 units are residential. Nine or more units is commercial financing.
The standard minimum is 1.0x, meaning the rent covers the full monthly payment. Sub-1.0 DSCR programs exist with different pricing and leverage.
Loans start at $150,000 with no stated maximum. Maximum LTV on 5-8 unit buildings can be lower than on 1-4 units and varies by program.
No. The loan qualifies on the building's rent. You do not provide W-2s or tax returns.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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